The New York Times reported Sunday that Hezbollah is facing its worst financial crisis in years amid the war with Israel and the US, citing documents obtained by the newspaper and interviews with Lebanese, US and Israeli officials.
When Israel launched its latest war against Hezbollah in March, the first targets the IDF warned it would strike were not weapons depots or underground command centers, but banks.
Israeli fighter jets destroyed more than a dozen branches of a financial institution known as al-Qard al-Hassan, which for years has been accused of functioning as Hezbollah's bank in Lebanon. Further airstrikes targeted money changers used by Iran to transfer funds to Hezbollah, as well as gas stations that generated revenue for the terrorist organization. Through the strikes, Israel sent a clear message: Hezbollah's financial infrastructure, not only its weapons stockpiles, was in the crosshairs.
According to The New York Times, the bombings marked the culmination of the most aggressive campaign yet by Israel, the Trump administration and the Lebanese government to weaken Hezbollah financially by disrupting its funding channels, particularly money flowing from Iran.
In the months leading up to the war, the Lebanese government, under pressure from the Trump administration, worked to block routes Hezbollah used to receive and transfer money, including through Beirut's international airport. Washington also pressed Lebanon's central bank to tighten oversight of the country's cash-based economy, which Hezbollah had exploited for years.
According to documents obtained by The New York Times and interviews with Lebanese, US and Israeli officials, as well as people close to Hezbollah, the organization is now under its most severe financial pressure in years. The full extent of the damage to Hezbollah's vast network of operations remains unclear. Both the terrorist organization and Iran, its principal backer, have proved in the past that they can withstand attempts to weaken them, rebuild militarily and find new ways to keep money flowing.
Nevertheless, Hezbollah is struggling to finance its extensive social welfare network, which for years has been a cornerstone of its support among Lebanon's Shiite population. At the same time, the organization is increasingly prioritizing military spending after successive Israeli campaigns severely damaged its capabilities.
Youssef al-Zein, Hezbollah's media relations chief, told The New York Times in May that the organization had stopped making compensation payments it had promised supporters as it struggled to meet the needs of hundreds of thousands of people displaced by the war.
Before the war, the US State Department estimated that Iran provided Hezbollah with about $700 million a year. That was believed to account for most of the organization's roughly $1 billion annual budget.
Lebanese, US and Israeli officials who spoke with The New York Times said Iran had increased its financial assistance to Hezbollah over the past year. Even so, the money has not been enough to cover the organization's substantial wartime expenses.
Early last year, US officials relayed an Israeli warning to the Lebanese government that Iran was sending Hezbollah suitcases filled with US dollars on civilian flights to Beirut. According to two Lebanese officials and an Israeli official, Iranian diplomats carried the money in some cases. Following the warning, Lebanon suspended all flights from Iran, a measure that remains in effect. Airport employees identified with Hezbollah were also removed from their positions, and Lebanese authorities replaced them with security personnel who coordinate with US officials.
Another indication of the shifting balance of power in Lebanon came during an August 2025 visit by Ali Larijani, secretary of Iran's Supreme National Security Council. During the visit, Larijani met Lebanese Prime Minister Nawaf Salam. Salam said the meeting illustrated just how much the situation in the country had changed.
"Our message to the Iranians was very clear," Salam told The New York Times shortly after the visit. "We cannot allow the Iranians to interfere in our internal affairs," he added.
